/raid1/www/Hosts/bankrupt/TCRLA_Public/040204.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

          Wednesday, February 4, 2004, Vol. 5, Issue 24

                          Headlines

A R G E N T I N A

CARRONDI Y NICOLAU: Court Studies Reorganization Motion
CEREAL HENDERSON: Files "Concurso Preventivo" Motion
COLEGIO SAN EDUARDO: Credit Check in Reorganization Ends Today
DEMIS: Credit Validation Closes Today
DIESEL: Individual Reports Due at Court Today

DIRECTV LA: Files Motion To Reject Corporate Headquarters Lease
DISTAY: Seeks Court Permission to Undergo Reorganization
EL CUIDADANO: Credit Verifications in Bankruptcy Close
HAKUNA MATATA: Individual Reports Filing Deadline Today
IMPSAT: Announces New Service Platform

JOAPI: Deadline for Individual Reports Filing Today
KRIXIA: Receiver Closes Credit Verifications in Bankruptcy
OCA: Advent Acquires 100% of Shares
ORGANIZACION VISEP: Last Day for Claims Filing Today
SABIEX AUSTRAL: Credit Verification in Bankruptcy Ends

SECURITY CONSULTANTS: General Report Due at Court Today
SIEMAR: Individual Reports Due at Court Today


B E R M U D A

KWELM: Creditors Support Early Closure Of Insurance Run-Off


B R A Z I L

AES CORP.: Makes $90M Debt Payment to BNDES
AES TIETE: Fitch Upgrades Certificates to 'B-', Stable Outlook
CERJ: Spanish Parent Planning on BRL600 Mln Injection
CFLCL: Alliant Seeks Voting Rights
EMBRATEL: TelComp Seeks Investigation Into Potential Purchase

PARMALAT BRASIL: Rossetto Travels To Italy To Meet With Bondi

* S&P Unlikely To Upgrade Brazil's Ratings


C H I L E

AES GENER: Profits Increase In 2003
EDELNOR: Possible Merger Will Not Immediatele Effect Rating


D O M I N I C A N   R E P U B L I C

* S&P Cuts Dominican Republic's Sovereign Rating to 'CC'


M E X I C O

MEXICANA: Establishes Commercial Strategic Alliance With Iberia


P U E R T O   R I C O

CENTENNIAL COMMUNICATIONS: Lawson to Integrate Procurement Ops

     -  -  -  -  -  -  -  -

=================
A R G E N T I N A
=================

CARRONDI Y NICOLAU: Court Studies Reorganization Motion
-------------------------------------------------------
Carrondi y Nicolau S.H., submitted its motion for "Concurso
Preventivo" at Buenos Aires Court No. 13. Argentine newspaper La
Nacion relates that Judge Villar handles the Company's case with
assistance from Dr. Cardama, the city's Clerk No. 26. The report,
however, did not indicate whether the textile producer's petition
is likely to be approved.


CONTACT:  Carrondi y Nicolau
          9th Floor          
          Sarmiento 1986
          Buenos Aires


CEREAL HENDERSON: Files "Concurso Preventivo" Motion
----------------------------------------------------
Argentine company Cereal Henderson S.A. seeks court permission to
undergo reorganization, reports local news source Infobae. Buenos
Aires Court No. 19 is studying the Company's motion for "Concurso
Preventivo". Clerk No. 37 assists the court on the case.

CONTACT:  Cereal Henderson S.A.
          Lugones 1957
          Buenos Aires


COLEGIO SAN EDUARDO: Credit Check in Reorganization Ends Today
--------------------------------------------------------------
The deadline for credit verifications regarding the
reorganization of Colegio San Eduardo S.A. ends today, as ordered
by Buenos Aires Court No. 10. Assisted by Clerk No. 20, the court
approved the Company's "Concurso Preventivo" motion late last
year.

Estudio Abella, Fernandez, Martinez, the Company's appointed
receiver, will file the individual reports on March 17, 2004.
These reports contain the results of the credit verification
process.

The Troubled Company Reporter - Latin America earlier reported
that the receiver is also required to prepare a general report
after the individual reports are processed at court. This report
is for filing on May 3 next year. The informative assembly, one
of the last processes in a reorganization, will be held on
October 18.

CONTACT:  Estudio Abella, Fernandez, Martinez
          Planes 1303
          Buenos Aires


DEMIS: Credit Validation Closes Today
-------------------------------------
Creditors of Argentina's Demis S.A. must have their claims filed
as the deadline expires today. The Company's receiver, Mr. Jose
Luis Abuchdid, examined and authenticated claims.

Infobae indicates that Court No. 11, which handles the Company's
case, requires the receiver to hand in the individual reports on
March 17 next year. The general report is due on April 28, said
the Troubled Company Reporter - Latin America in an earlier
report.

The Company's assets will be liquidated at the end of the process
to repay creditors. Payments will be based on the results of the
credit verifications.

CONTACT:  Jose Luis Abuchdid
          Tacuari 1179
          Buenos Aires


DIESEL: Individual Reports Due at Court Today
---------------------------------------------
Mr. Julio Ramon Coy, the designated receiver for Argentine
company Diesel S.A. must file the individual reports for the
Company's bankruptcy today. These reports were prepared after the
credit verification process was completed earlier last year.

After the individual reports are processed at court, the receiver
will prepare a general report consolidating the data from them.
This deadline for the filing of this report is March 17, 2004,
after which the Company's assets will be liquidated to reimburse
creditors.

An earlier report by the Troubled Company Reporter - Latin
America revealed that Buenos Aires Court No. 20 handles the
Company's case. Clerk No. 39 assists the court.

CONTACT:  Julio Ramon Coy
          Piedres 181
          Buenos Aires


DIRECTV LA: Files Motion To Reject Corporate Headquarters Lease
---------------------------------------------------------------
DirecTV Latin America, LLC's corporate headquarters is located at
2004 East Commercial Blvd. in Fort Lauderdale, Florida.  The
Debtor leases its Headquarters from the California State
Teacher's Retirement System, through CB Richard Ellis.

Joel A. Waite, Esq., at Young, Conway, Stargatt & Taylor, LLP, in
Wilmington, Delaware, relates that in its current form, the
Headquarters Lease represents an unacceptable burden on the
Debtor's estate and should be rejected.  Assumption of the
current Headquarters Lease would bind the estate for a five-year
term, during which period the Debtor expects to realize a
substantial cost saving when certain administrative and
operational functions can be relocated as business requires.  In
reaching this conclusion, the Debtor considered the market for
alternative locations, together with the strong possibility that
some functions can be accommodated into another site presently
owned by News Corp.

Mr. Waite states that the Debtor attempted to restructure the
Headquarters Lease with the California State Teacher's Retirement
System, but the parties have failed to reach an agreement on the
terms, which would allow the Debtor the ability to terminate the
lease on reasonable terms should the anticipated relocation of
certain functions to other existing facilities occur.  The Debtor
and the California State Teacher's Retirement System have to date
been unable to reach an agreement on revised terms for the
current space on terms acceptable to the Debtor.

The Debtor also determined that the Headquarters Lease has no
independent economic value to its estate, since the lease is at
current fair market rates.  Mr. Waite notes that it is unlikely
that the Debtor could sublease excess space in such a manner as
to mitigate the costs to the estate.

Accordingly, the Debtor seeks the Court's authority to reject the
Headquarters Lease effective as of June 30, 2004.

Mr. Waite recalls that on December 22, 2003, General Motors
Corporation, Hughes Electronics Corporation and News Corp.
completed a series of transactions that resulted in a split-off
of Hughes from General Motors and News Corp.'s acquisition of 34%
of Hughes' outstanding common stock.  Under the Plan, Hughes will
acquire the majority equity stake in the Reorganized Debtor.  The
completion of the transaction is expected to generate a number of
benefits, including better utilization of existing facilities.

Mr. Waite tells Judge Walsh that additional compelling facts
support the Debtor's decision to reject the Headquarters Lease.
The Debtor was unable to decide whether to accept or reject the
Headquarters Lease while the Hughes and News Corp. transaction
was pending.  The Debtor has understood for several months that
the transaction could present an opportunity for it to relocate
some of its operations to a News Corp. location, but it could not
risk rejecting the Headquarters Lease until the Hughes and News
Corp. transaction was finalized.  Fortunately, the closing of the
Hughes and News Corp. transaction has substantially improved the
Debtor's prospects for obtaining improved lease terms for new
space at other locations.  Subsequently, the Debtor believes that
it will be able to relocate its operations at the current
Headquarters on or before the Rejection Date to locations that
offer the requisite flexibility to accommodate changing space
requirements.

Moreover, the nature of the Debtor's satellite communications
business makes it difficult to feasibly relocate its headquarters
before the Rejection Date.  The Debtor's business consists of
heavy or complex equipment, which is currently fixed or otherwise
attached to the headquarters and cannot be easily moved in a
short period of time.  The equipment is critical to the Debtor's
ongoing business operations.  The Debtor is also unable to delay
its confirmation hearing or the Plan Effective Date as a result
of fixed termination dates in several key restructured
programming agreements.  Mr. Waite, therefore, contends that
absent the Court's approval of the prospective Rejection Date,
the Debtor will be unable to reject the Headquarters Lease and
will be required to remain in its current headquarters for the
remainder of the lease term.

Mr. White contends that the California State Teacher's Retirement
System will not be prejudiced by the proposed Rejection Date.  
The Debtor has performed and will continue to perform in a timely
manner its postpetition obligations under the Headquarters Lease
for each month it remains in possession of the property.  
Furthermore, the Debtor will not occupy the headquarters location
after June 30, 2004.  Additional time for the Debtor to relocate
will also ensure that all heavy equipment is removed from the
property and that the headquarters is surrendered in accordance
with the lease terms.  In addition, the Debtor has been advised
that other vacant space exists in the current premises and that
the California State Teacher's Retirement System is unlikely to
obtain a replacement tenant prepared to occupy the space
currently used by the Debtor before the proposed Rejection Date.
(DirecTV Latin America Bankruptcy News, Issue No. 19; Bankruptcy
Creditors' Service, Inc., 215/945-7000)


DISTAY: Seeks Court Permission to Undergo Reorganization
--------------------------------------------------------
Judge Favier Dubois of Buenos Aires Court No. 9 studies a
petition for reorganization filed by local company Distay S.A.,
according to a report by local newspaper La Nacion. Clerk No. 17,
Dr. Raisberg de Merenzon, assists the court on the case.

CONTACT:  Distay S.A.
          Ave Mitre 3630
          Buenos Aires


EL CUIDADANO: Credit Verifications in Bankruptcy Close
------------------------------------------------------
Buenos Aires Court No. 11 orders that the credit verification
process for bankruptcy of local company El Ciudadano y la Region
S.A. ends today. The Company's receiver, Roberto Di Martino, will
prepare the individual reports, which are due at the court on
March 17.

The receiver will also prepare a general report after the
individual reports are processed at court. This report is due for
filing on April 28 next year, said the Troubled Company Reporter
in an earlier report.

The receiver's assets will be liquidated at the end of the
process to reimburse creditors. Payments will be based on the
results of the verification process.

CONTACT:  Roberto Du Martino
          Ave Callao 449
          Buenos Aires


HAKUNA MATATA: Individual Reports Filing Deadline Today
-------------------------------------------------------
Mr. Anibal Daniel Osuna, receiver for Hakuna Matata S.R.L., must
file the individual reports for the Company's bankruptcy today.
The reports are prepared after the credit verification process
was completed. After these reports are processed at court, the
receiver will prepare the general report, which is due on March
19.

CONTACT:  Anibal Daniel Osuna
          Mercedes 3259
          Buenos Aires


IMPSAT: Announces New Service Platform
--------------------------------------
It is a complete service platform oriented to multinational
corporations and telecommunication service providers with
branches or subsidiaries in Latin America.    

Impsat, a leading provider of integrated telecommunications and
Data Center services in Latin America launches Impsat Global
Solutions, a complete service platform specially developed to
solve the international communication needs of its current and
potential global customers.

Impsat Global Solutions makes possible the integration of all
types of offices and employees, voice communication services,
communication between computers that run mission critical
applications, videoconferences, electronic mail and messaging, as
well as Internet access.

"Today multinational companies can have a provider that solves
their demanding communication needs with the highest quality
standards, regardless of the geographic location of their
business units, integrating data, Internet, data center and
telephony services. These are our four areas of specialization
and we continue to offer services to meet our clients' needs in
these areas. With this launch, Impsat places at its customers'
disposal the most extensive and powerful network in Latin
America", said Leonardo Barbero, Impsat's Data Products Senior
Vice President.

Impsat Global Solutions allows customers to have the same
services and quality, performance and local support standards in
its entire regional network. It was simultaneously launched in
Argentina, Chile, Brazil, Venezuela, Ecuador, Peru, Colombia and
the United States, extending its coverage to countries of Central
America, the Caribbean, Europe and Asia.

Impsat Global Solutions' offers a unique homogeneous solution in
Latin America and the US due to its network's integral design
that enables fixed or remote accessibility, latest generation
management and monitoring tools, customer service coordination in
a single point of contact. These features will result in very
concrete benefits to customers: the highest service quality,
guaranteed continuity and cost optimization.

Impsat is a leading provider of integrated data, Internet, voice
and Data Center telecommunications services in Latin America.
Impsat has set up an extensive high capacity broadband network
throughout Latin America, using State-of-the Art technology that
includes IP/ATM switching, DWDM, and non-zero dispersion fiber
optic. Moreover, the company owns 14 data centers with the most
advanced technology worldwide, with offices in the main cities of
Latin America. Impsat provides services to over 3,300 customers
that include national and multinational companies, governmental
entities and wholesale services to carriers and others. At
present, the company is operating in Argentina, Colombia,
Venezuela, Ecuador, Brazil, USA, Chile and Peru.
  
CONTACT:  Hector Alonso
          Phone: 54 11 51 70 3700


JOAPI: Deadline for Individual Reports Filing Today
---------------------------------------------------
Today is the deadline for the filing of the individual reports
for the bankruptcy of Argentine company Joapi S.A., according to
the Troubled Company Reporter - Latin America in an earlier
report. The Company's receiver, Mr. Ernesto Carlos Borzone,
prepared the reports after the credit verification was completed.

Buenos Aires Court No. 24, which issued the bankruptcy order,
requires the receiver to hand in the general report on March 17.
This report is prepared after the individual reports are
processed at court.

CONTACT:  Ernesto Carlos Borzone
          Cuenca 1464
          Buenos Aires


KRIXIA: Receiver Closes Credit Verifications in Bankruptcy
----------------------------------------------------------
Argentine accountant Mr. Maximo Conrado Piccinelli, receiver for
Krixia S.A., closes the credit verification process for the
Company's bankruptcy today. As ordered by Buenos Aires Court No.
1, the receiver will prepare the individual reports.

The receiver will also prepare a general report after the
individual reports are processed at Buenos Aires Court No. 13.
The Company's assets will be liquidated at the end of the
bankruptcy process to reimburse creditors.

CONTACT:  Maximo Conrado Piccinelli
          Montevideo 666
          Buenos Aires


OCA: Advent Acquires 100% of Shares
-----------------------------------
Advent International, the global private equity firm, acquired
100% of the shares of S.A. OCA, the largest private courier and
postal services company in Argentina. The value of the
acquisition has not been disclosed. The transaction is one of the
first major investments by a private equity firm in Argentina
since the currency devaluation in January 2002.

OCA was founded in 1961 as the first private courier company in
Argentina, one of the few countries in the world with a
deregulated postal market. Today the company has 5,500 employees
and 900 delivery vans, serving over 8,000 corporate customers
nationwide. Headquartered in Buenos Aires, OCA is involved in
three businesses: transport and delivery of checks for the
banking industry, transport and distribution of commercial
documents, and postal services for both the retail and corporate
markets. The company is the market leader in the corporate
sector, providing value-added services to all major financial
institutions in Argentina.

Despite its strong market position, OCA has operated under
creditor reorganization proceedings (similar to Chapter 11) since
December 2002, after the prolonged recession in Argentina caused
the company to default on certain loan payments in 2001. OCA
currently has US$280 million in debt on its balance sheet. Advent
expects that with its support the company will be able to resolve
its financial situation and emerge from the reorganization
process by the middle of this year.

"OCA has a compelling business model, experienced management, and
potentially attractive profitability and cash flow," said Ernest
Bachrach, Chief Executive of Advent's Latin American operations.
"The company's heavy debt burden has prevented it from making the
capital investments needed to develop its business over the last
three years. Once that burden has been lifted, it will be free to
take the steps that will enable it to achieve its growth
potential."

OCA will seek to accelerate growth by expanding into other value-
added services, drawing on Advent's global expertise in the
business services sector, one of the firm's strongest areas of
focus.

Juan Carlos Garcia, current CEO of OCA, said, "We welcome
Advent's involvement in the company and look forward to working
with them to complete the reorganization process and build the
value of the business. As a market leader, with renewed financial
stability, we will be well positioned to benefit from the
continued recovery of the Argentine economy."

Mr. Garcia will become a member of OCA's board of directors. He
will be joined on the board by Advent's Mr. Bachrach as well as
senior Advent partners Matias Eduardo Campiani and Juan Carlos
Torres. Advent anticipates appointing a number of independent
directors at a later date.

Advent International is one of the leading and longest-
established private equity investors in Latin America. Since
1996, when it began operating in the region, the firm has raised
$500 million in funds and invested in 21 Latin American companies
with a total enterprise value of $800 million.

The acquisition of OCA is Advent's fourth investment in
Argentina. Previous investments include Graffigna and Sainte
Sylvie, two premium wine producers acquired by Advent in 1999 and
subsequently sold to Allied Domecq; Fada Pharma, the largest
manufacturer of generic pharmaceuticals for the institutional
market; and Universal Assistance, the leading provider of travel
and road-side assistance services in Argentina.

About Advent International

Advent International is one of the world's largest private equity
firms, with $6 billion in cumulative capital raised and offices
in 13 countries across North America, Europe, Latin America and
Asia Pacific. Since its founding in 1984, Advent has invested in
over 500 companies and has helped businesses raise $10 billion
through public equity and debt offerings. These include 130 IPOs
on major stock exchanges worldwide. Advent is committed to
helping management teams build successful businesses by applying
its industry expertise, international resources and local market
knowledge. For more information, visit
www.adventinternational.com.


ORGANIZACION VISEP: Last Day for Claims Filing Today
----------------------------------------------------
Creditors of Argentine company Organizacion Visep S.R.L. are
required to file their claims today in order to qualify for
payments to be made after the Company's assets are liquidated.
The Company's receiver, Ms. Liliana Patricia Diaz, authenticated
claims, and will prepare the required reports.

The individual reports, which contain the results of the credit
verification process, are due at the court on March 17. The
receiver will prepare the general report, to be submitted on
April 29, after the individual reports are processed at court.

Court No. 15 of the Civil and Commercial Tribunal of Rosario
handles the Company's case, according to an earlier report by the
Troubled Company Reporter - Latin America.

CONTACT:  Organizacion Visep S.R.L.
          San Lorenzo 125
          Rosario, Santa Fe

          Liliana Patricia Diaz
          Ave Pellegrini 183
          Rosario, Santa Fe


SABIEX AUSTRAL: Credit Verification in Bankruptcy Ends
------------------------------------------------------
Mr. Alfredo Ruben Rodriguez, receiver for the bankruptcy of
Buenos Aires-based Sabiex Austral S.A., closes the credit
verification process today. This part of the bankruptcy process
is done to determine the nature and amount of the Company's
debts.

In an earlier report, the Troubled Company Reporter - Latin
America said that the city's Court No. 18 handles the Company's
case with assistance from Clerk No. 36. The Company's assets will
be liquidated at the end of the proceedings.

CONTACT:  Sabiex Austral S.A.
          Ave Corrientes 1296
          Buenos Aires

          Alfredo Ruben Rodriguez
          Marcelo T Alvear 1775
          Buenos Aires


SECURITY CONSULTANTS: General Report Due at Court Today
-------------------------------------------------------
The general report for the reorganization process of Argentina-
based Security Consultants Office is due for filing today,
according to the Troubled Company Reporter - Latin America in an
earlier report. The Company's receiver, Ms. Marta Susana
Polistina, is responsible for preparing the report after the
individual reports were processed at court.

Buenos Aires Court No. 10 handles the Company's case. The TCR-LA
added that the court called for an informative assembly to be
held on July 8, 2004, without indicating the intended venue.

CONTACT:  Marta Susana Polistina
          Ave. Corrientes 745
          Buenos Aires


SIEMAR: Individual Reports Due at Court Today
---------------------------------------------
The individual reports for the reorganization of Argentine
company Siemar S.A.C. y C. are due at Buenos Aires Court No. 22
today. These reports contain results of the credit verification
process completed last November 18.

The Company's receiver, Alberto Vilela, will prepare a general
report after the individual reports are processed at court. The
court requires this report to be filed on March 17.

The Company stopped making debt payments on August 15, 2001,
according to an earlier report by the Troubled Company Reporter -
Latin America.

Insolvency Judge Braga handles the case with Dr. Mata, Buenos
Aires Court No. 43. The court has also set the date for the
informative assembly. Without revealing the intended venue of the
meeting, Infobae reported that the assembly will be held on
September 2, 2004.

CONTACT:  Siemar S.A.C. y C.
          Oliden 4326
          Buenos Aires

          Alberto Vilela
          Rodriguez Pe a 431
          Buenos Aires




=============
B E R M U D A
=============

KWELM: Creditors Support Early Closure Of Insurance Run-Off
-----------------------------------------------------------
Creditors of the insolvent London-based KWELM Insurance companies
voted in favor of proposals for the early closure of the
insurance run-off in a series of meetings held on 29 January
2004.

The overwhelming approval of the early closure program paves the
way for creditors to receive the bulk of the US$1.3 billion held
for distribution far earlier than under the original scheme. The
early closure proposals envisage payment of a substantive closure
distribution to creditors late in 2005 or early 2006, subject to
the level and complexity of further claims received. The original
outline timescale for the run off extended beyond 2015.

The proposals also foresee a small ultimate distribution some
years later, the size of which would depend on the final level of
set-off, the amount of reinsurance collected, the realization of
remaining assets, the value of total liabilities and costs
incurred in the final stages of the run-off.

The KWELM companies are subsidiaries of the failed London United
Investments plc. The compromise Kingscroft Insurance, Walbrook
Insurance, El Paso Insurance, Lime Street Insurance and Mutual
Reinsurance. They specialized in US casualty, professional
indemnity and other liability insurance business, which was
principally written through HS Weavers (Underwriting) Agencies
Limited. Over 90% of the KWELM assets and liabilities are in US
dollars and most of the policyholders are based in the United
States.

Following approval of the scheme by the Courts, the scheme
administrators expect it to become effective in early April.

Under the scheme, creditors must submit details of any
outstanding claims and supporting evidence by a bar date which is
expected to be 29 September 2004. Creditors are being offered the
facility to lodge their claims through the Kwelm website from
mid-April.

Chris Hughes and Ian Bond, the scheme administrators responsible
for the run-off of the businesses, say that "establishing a bar
date for submitting claims starts a process to provide certainty
as to the value of outstanding and contingent claims. As a
result, we will be able to distribute the bulk of the assets to
the creditors far earlier than under the original scheme."

Approval of early closure offers creditors the prospect of
receiving total payments ranging between 58% and 76% of sums due.
That compares to average distributions of 46% to date. The
potential payout is substantially higher than expected when the
original scheme was put in place in 1993.

Total funds recovered for distribution to creditors now exceed
US$3.1 billion with total ultimate liabilities estimated at
US$5.8 billion, including a US$1.2 billion special margin.

The tenth annual report to Kwelm creditors will be made available
in May 2004.

CONTACTS:  IAN BOND
           Tel: +44 (0) 1245 361 653
            
           CHRIS REYNOLDS
           Tel: +44 (0) 20 7645 4990

           PATRICIA KNOX, CAROLINE CECIL ASSOCIATES
           Tel: +44 (0) 20 7610 4110
           Email: patricia@carolinececil.co.uk
           URL: www.carolinececil.co.uk



===========
B R A Z I L
===========

AES CORP.: Makes $90M Debt Payment to BNDES
-------------------------------------------
Brazil's National Development Bank (BNDES) received Friday a
US$90-million debt payment from U.S. energy company AES Corp. as
part of a debt accord reached last month, reports Reuters.

"With this payment, plus the approval by Aneel (the power sector
regulator) and the Central Bank, the debt restructuring contracts
enter into force," the BNDES said in a statement.

AES sealed a deal with BNDES in late December to restructure some
US$2.3 billion in debt. Under the terms of the deal, some US$1.2
billion in debt with the BNDES was cut to US$510 million by
creating a new company called Brasiliana Energia in partnership
with the Brazilian state-owned bank.

On Friday, Moody's Investors Service said it may raise its
ratings on AES Corp., citing a more stable financial condition
and reduced debt. Moody's currently has a senior implied rating
of "B2," its fifth-highest junk rating, on AES and rates its
senior unsecured notes one notch lower at "B3." The actions
affect about US$6 billion of debt.


AES TIETE: Fitch Upgrades Certificates to 'B-', Stable Outlook
--------------------------------------------------------------
Fitch Ratings has upgraded the rating on US$300 million of 11.5%
trust certificates issued by AES IHB Cayman, Ltd. (IHB) to 'B-'
from 'DDD' following their restructuring. Fitch has assigned a
Stable Rating Outlook.

The certificates are guaranteed by AES Tiete Holding, LTD., a
holding company of AES Tiete S.A. (Tiete), a publicly traded,
Brazilian, hydroelectric generation company. Fitch has also
maintained the national scale rating of Tiete at 'BBB+(bra)'. The
rating of the certificates is based on the underlying credit
strength of Tiete, and the quality and amount of dividends and
distributions available to the holding company to pay debt
service on the certificates.

Tiete's primary offtaker, Eletropaulo, which is estimated to
supply approximately 70% of Tiete's 2004 revenues, remains in
default on its debt, but is expected to close on its debt
restructuring by Feb. 16, 2004, resulting in an expected ratings
upgrade. The rating of the Tiete certificates assumes the
successful completion of the Eletropaulo debt restructuring.

Material terms of the restructuring of the certificates include:

-- Maintenance of principal at US$300 million;

-- Payment of interest through December (approximately US$17
million, with US$10 million coming directly from The AES
Corporation);

-- Maintenance of the original 11.5% interest rate;

-- The maturity date has been extended by 4 months to April 2016
as part of shifting of payment dates to April and October from
June and December to better match the timetable for distribution
of cash flow from Tiete;

-- No required debt service payments in 2004, although interest
accrues and there is a cash sweep;

-- Minimum US$15 million required payment in 2005, plus a cash
sweep;

-- Mortgage style amortization schedule beginning in 2006;

-- Maintenance of the pledge of Tiete shares previously owned by
AES (now owned by Brasiliana Energia);

-- Increase in the debt service reserve account (DSRA) from 6
months to 1 year, with an initial US$15 million contribution from
AES at closing and the balance to be funded with operating cash
flow by year-end 2007;

-- The certificates will no longer be supported by Overseas
Private Investment Corporation (OPIC) political risk insurance or
foreign exchange liquidity facility.

The new transaction structure allows Tiete's holding company to
address its cash short-fall and improve its liquidity position to
begin making scheduled debt service payment by 2006. While cash
generation at the Tiete operating company has not been impaired,
the actual distribution of dividends and TJLP (interest on
capital) was not sufficient to meet scheduled debt service. The
situation was temporarily addressed in the short-term through the
use of an intercompany loan between Tiete and its holding
company, which totals BRL70 million (US$24 million) and a draw on
the DSRA. While the DSRA will be funded initially by AES, the
intercompany loan will be repaid on a priority basis with first
available cash flow distributed by Tiete and is expected to be
repaid during 2004.

Tiete benefits from a growing base of inflation-indexed
contracted revenues, increasingly derived from a long-term power
purchase agreement (PPA) with Eletropaulo. The Eletropaulo PPA
ramps up supply in 25% increments beginning in 2003 and is more
favorably priced than Tiete's initial (privatization) contracts,
which the Eletropaulo PPA is replacing. The company's operating
cost structure is low and relatively stable and operating company
debt service is easily manageable. Fitch believes that Tiete's
net income levels and its holding company's liquidity situation
should improve in 2004 and thereafter as it is expected to
receive greater dividends due to the growth in net earnings as
the PPA with Eletropaulo ramps up.

Furthermore, the new debt structure allows for no mandatory
minimum payment in 2004 and a US$15 million mandatory payment in
2005. By 2006, when scheduled amortization begins, revenues are
entirely related to the Eletropaulo contract, and dividends and
distributions should be more than adequate to service the
certificates, even under comparable inflationary stress scenarios
that constrained dividends in 2002 and early 2003.

Tiete is now ultimately owned by Brasiliana Energia (Brasiliana),
a new holding company created as part of the restructuring of
AES' debt with BNDES. Brasilia will hold AES' direct and indirect
interests in AES Eletropaulo, AES Uruguaiana and Tiete. AES will
own 50.1% of the common shares and BNDES will own 49.9% of the
common shares plus non-voting preferred shares that will provide
BNDES with approximately 53% of the total capital of Brasiliana.
As part of the restructuring of the certificates, AES received
approval for the transfer of AES-owned shares of Tiete to BNDES,
which were required to complete the restructuring of US$1.2
billion of Eletropaulo holding company debt. AES equity interests
in Eletropaulo, Uruguaiana and Tiete combined with US$90 million
from AES and its Brazilian subsidiaries will be applied to reduce
the outstanding debt with BNDES from US$1.2 billion to US$510
million, which will then be payable over 11 years. The agreement
was approved by the industry regulator, Aneel, on Jan. 19, 2004.

Tiete is directly owned by AES Tiete Empreendimentos S.A. (TE)
and AES Tiete Participacoes S.A. (TP), now subsidiaries of
Brasiliana. TE and TP own 71% of the voting shares of Tiete which
represents approximately 44% of the company's total capital
stock. While TE and TP have effective control, they receive only
44% of dividends and distributions from Tiete, which provide the
cash flow available for debt service on the certificates. TE and
TP forward all payments to AES Tiete Holdings, Ltd., which will
service the certificate.
  
CONTACT:  Fitch Ratings
          Jason Todd
          Chicago
          Phone: 312-368-3217

          Ricardo Carvalho
          Rio de Janeiro
          Phone: +55 21-2224-3558

          Jayme Bartling
          Sao Paulo
          Phone: +55-11-287-3177

          Media Relations:
          James Jockle
          New York
          Phone: 212-908-0547


CERJ: Spanish Parent Planning on BRL600 Mln Injection
-----------------------------------------------------
Spanish power company Endesa plans to inject BRL600 million into
cash-strapped Brazilian distributor Cerj, converting the debt
that the Company has with its Chilean subsidiary Enersis, Endesa
CEO Rafael Miranda said.

According to Business News Americas, the move is part of Endesa's
efforts to obtain returns on recent Latin American investments.

Cerj recorded a net loss of US$166 million in 2003, compared to a
US$15-million loss the previous year. Revenues fell 11.2% to
US$505 million in 2003 compared to US$569 million in 2002.

The capital injection will allow the Company to balance its books
and tap financing, Endesa International president Luis Rivera
said. The decision to capitalize Cerj is an alternative to
tapping a US$1-billion bailout loan package that national
development bank BNDES is offering local distributors.

"The BNDES loan is attractive, but it is aimed at companies with
financial difficulties, not for us," Rivera said.

CONTACT:  Cia de Eletricidade do Estado do Rio de Janeiro - Cerj
          Sao Domingos
          24210-200 Niteroi - RJ
          Brazil
          Phone: +55 21 2613-7783
          Fax:  +55 31 2613-7123
          Home Page: http://www.cerj.com.br
          Contacts:
          Eduardo J. Bernini, Chairman
          Emilio Lopez Ordobas, Vice Chairman


CFLCL: Alliant Seeks Voting Rights
----------------------------------
Alliant Energy Holdings do Brasil is seeking voting rights in
Companhia Forca e Luz Cataguazes-Leopoldina (CFLCL) in a bid to
improve the management of the money-losing Brazilian power
holding company, reports Reuters.

In an advertisement published in major Brazilian newspapers last
Tuesday, Alliant said that following consecutive years of losses
by CFLCL, preferred shareholders like Alliant should be granted
voting rights in the Company to be able to guarantee a better
management.

"We do not want control, we do not want to sell anything and we
do not want to leave Brazil," Carlos Eduardo Miranda, director of
Alliant Energy Holdings do Brasil said in response to a comment
made by CFLCL's investor relations director, Mauricio Perez
Botelho.

Botelho said Alliant and another shareholder, Fondelec, are
trying to take indirect control of the Company in order to boost
its value and then sell their stakes.

Alliant has a 39.4% stake in CFLCL's total capital and Fondelec
has a 13.1% stake.

Eduardo Miranda continued: "All we want is that the law be
fulfilled and we expect that to happen soon."

Brazilian law states that preferred shareholders should get
voting rights if a company has three consecutive years of losses
and does not pay dividends.

CONTACT:  In Cataguases
          Phone: +55 32 3429-6000
          Fax: +55 32 3429-6480 / 3429-6317

          In Rio de Janeiro
          Phone: +55 21 2122-6900
          Fax: +55 21 2122-6931

          http://www.cataguazes.com.br
          E-mail to: stockinfo@cataguazes.com.br

          Mauricio Perez Botelho, Investor Relations Director


EMBRATEL: TelComp Seeks Investigation Into Potential Purchase
-------------------------------------------------------------
Brazil's competitive telecoms services association TelComp is
requesting an investigation into the possible acquisition of
Embratel by three incumbent local telephone operators - Telemar
(NYSE: TNE), Brasil Telecom (NYSE: BRP) and Spain's Telefonica
(NYSE: TEF), reports Business News Americas.

In a statement, TelComp said it has asked the country's antitrust
agency SDE (part of the justice ministry), as well as telecoms
regulator Anatel to examine the potential purchase of Embratel by
the incumbents.

"The possibility of the purchase represents a serious risk for
users, companies that want to enter the telecoms sector and
suppliers," TelComp president Luis Cuza said in the statement.
"The concessionaires control almost all the market."

If the purchase were to go through, they would control 95% of the
national long distance market, 87% of international calls and
more than 85% of data transmission and internet - on top of their
existing 98% of the local fixed line market, TelComp said.

Under the Brazilian competition system, the SDE evaluates
requests from a legal perspective while the finance ministry's
organ, SEAE, evaluates the economic impact. SDE and SEAE send
their findings to the antitrust authority, Cade, also linked to
the justice ministry, which issues the final decision.

Bankrupt U.S. telecommunications giant MCI (formerly WorldCom
Inc.), which won control of Embratel in 1998 for US$2.3 billion,
said in November it aimed to sell its 52% voting stake in
Embratel as part of a reorganization plan approved by a U.S.
bankruptcy court.

MCI is scheduled to open Embratel's data room Feb. 2 to allow
potential buyers to scrutinize its financial books.

CONTACT:   Silvia M.R. Pereira, Investor Relations
           Tel: (55 21) 2121-9662
           Fax: (55 21) 2121-6388
           Email: silvia.pereira@embratel.com.br
                  invest@embratel.com.br


PARMALAT BRASIL: Rossetto Travels To Italy To Meet With Bondi
-------------------------------------------------------------
Brazilian Agrarian Reform Minister Miguel Rossetto was due to
meet with representatives from Parmalat in Italy in Tuesday as
part of Brazil's effort to follow up the group's multibillion-
euro accounting crisis, says Reuters.

According to a ministry spokeswoman, Rossetto was scheduled to
meet with Enrico Bondi, Parmalat's government-appointed
administrator in Italy.

Brazil has yet to decide if it would also appoint a special
administrator to run Parmalat's Brazil operations. Information
that Rossetto obtains in Italy would help the government make
such a decision.

Struggling under the weight of lawsuits by unpaid suppliers and
creditors, Parmalat Brasil Industria de Alimentos and Brazilian
holding company, Parmalat Participacoes, filed for bankruptcy
protection last week.

Parmalat Brasil needed a cash injection of BRL50 million (US$17
million) to keep operating.

Parmalat Participacoes, on the other hand, has debt of about US$1
billion, according to the holding company's lawyers.


* S&P Unlikely To Upgrade Brazil's Ratings
------------------------------------------
Brazil may not be seeing an upgrade on its ratings despite
indication from Standard & Poor's in December that it was
becoming more inclined to raise the ratings.

Bloomberg News recalls that S&P raised its ratings outlook on
Brazil's foreign debt to positive from stable on Dec. 11 citing
rising exports, a falling debt burden and consistent economic
policies.

However, signs that the government may delay changes, such as
granting autonomy to the central bank, are throwing into doubt
the possible upgrade on the ratings.

Folha de Sao Paulo newspaper's on-line news service reported Jan.
29 that Brazilian President Luiz Inacio Lula da Silva indicated
that making the central bank independent isn't a priority.

S&P rates Brazil's foreign debt B+, four levels below investment
grade.



=========
C H I L E
=========

AES GENER: Profits Increase In 2003
-----------------------------------
Chilean generator AES Gener posted consolidated profits of
CLP53.7 billion (US$93.1 million) in 2003, a 64% increase from
the previous year's profits of CLP32.7 billion, reports Business
News Americas.

In a statement, the Company, owned by US company AES Corp., said
that the increase is due mainly to lower financial costs. Lower
financial costs and other expenses led to a 38% cut in non-
operating losses to CLP49.5 billion pesos, partly offsetting a
7.6% fall in operating income to CLP110 billion.

Higher income from subsidiaries and the positive impact of the
stronger Chilean peso against the US dollar also helped the
Company's 2003 results.

The lower operating income in 2003 was mainly due to
extraordinary payments received in 2002 for power sold on Chile's
northern SING grid, the Company said.

AES Gener generated Ebitda of CLP156.9 billion in 2003, which
allowed the Company to pay down CLP89.6 billion of debt and end
the year with CLP70 billion in cash.

AES Gener's total sales in Chile amounted to CLP331.4 billion.


EDELNOR: Possible Merger Will Not Immediatele Effect Rating
-----------------------------------------------------------
Belgium-based Tractebel and Chilean state copper corporation,
Corporacion Nacional del Cobre de Chile, parents of Chilean
thermal power generators, Empresa Electrica de Norte Grande S.A
(Edelnor; B-/Stable/--) and Electroandina, announced on Jan. 29,
2004 that they had reached an agreement to look into the
restructuring of their electric assets in the Northern
Interconnected System (SING), Chile's second-largest electric
system located in the northern region of the country. This
agreement could lead to a merger between Edelnor and
Electroandina during 2004. Standard & Poor's Ratings Services
said that if the merger goes through, it could have positive
credit implications for Edelnor as a result of the potential
synergies between the two power generators. The new company would
be the largest player in the SING and would also benefit from
sizable cost reductions. However, the process is only starting
and there are significant variables to be defined. Therefore, the
announcement has no credit impact at this time.
  
ANALYST:  Sergio Fuentes
          Buenos Aires
          Phone: (54) 114-891-2131

          Marta Castelli
          Buenos Aires
          Phone: (54) 114-891-2128  



===================================
D O M I N I C A N   R E P U B L I C
===================================

* S&P Cuts Dominican Republic's Sovereign Rating to 'CC'
--------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
sovereign credit and senior unsecured debt ratings on the
Dominican Republic to 'CC' from 'CCC'. Standard & Poor's also
said that it affirmed its 'C' short-term sovereign credit rating
on the republic. The outlook remains negative.

According to credit analyst Richard Francis, the downgrade
reflects the heightened probability of a default on debt due the
private sector now that the government is in discussion with the
Paris Club to reschedule its debt service obligations to its
bilateral creditors. "Given the general provisions of the Paris
Club's Evian Approach, this could imply that the government may
be asked to seek comparability of treatment from its private
creditors, under which the government would have to reschedule
all of its external debt," said Mr. Francis. "The government is
already in arrears to its bilateral creditors and to many of its
suppliers," he concluded.

ANALYST:  Richard Francis
          New York
          Phone: (1)-212-438-7348  



===========
M E X I C O
===========

MEXICANA: Establishes Commercial Strategic Alliance With Iberia
---------------------------------------------------------------
Spain and Mexico have never been closer now that Mexicana and
Iberia, the most important international airlines in their
respective markets, have announced the signing of a bilateral
agreement of code-share flights and frequent flyer programs.
Fernando Flores and Fernando Conte, the Chief Executive Officers
of both companies respectively, signed the agreement that will be
in effect as of April 1, 2004, subject to government approval.
Present at the signing were: the Secretary of Tourism, Rodolfo
Elizondo; the Mexican Ambassador in Spain, Gabriel Jimenez Remus;
the Director of Fonatur, John McCarthy; the Director of the
Tourism Council in Mexico, Francisco Ortiz; and the President of
the Cintra Group, Dr. Rogelio Gasca Neri. This new alliance will
be of great benefit to the passengers that travel on both
carriers.

Thanks to this agreement, passengers of both Mexicana and Iberia
will be able to travel with greater ease to regional destinations
in their respective countries since both companies will be
coordinating their schedules and products. Spaniard travelers can
choose from over 30 Mexican destinations connecting through hubs
in Mexico City and Cancun. Additionally, they will be able to
reach within Mexicana's network, 25 destinations in the United
States, Canada, Central and South America.

Mexicana's travelers will now have available Iberia's
transatlantic flights, which can take them to more than 34
destinations in Spain, 31 in Europe, and 6 in Africa and the
Middle East.

In addition to greater access by way of the route networks that
both carriers offer, passengers will have easier connections and
a one-time check- in from their origin to their final
destination.

Frecuenta and Iberia Plus, the frequent flyer programs of both
airlines, will reciprocally offer the option of accruing and
redeeming miles and points respectively. Members of these
programs will be able to benefit from the enhancements to these
programs effective April 1, 2004.

"These agreements will contribute to fortify our position as a
leader in air traffic between Europe and Latin America. With the
collaboration of Mexicana, an airline with one of the most modern
fleets in the Americas, it allows us to connect with very
attractive destinations in Mexico, and reinforces this market
which continues to maintain a great growth potential," said
Fernando Conte, CEO of Iberia.

"The airline market between Spain and Mexico has seen an increase
like no other market during the last few years, and presents
great opportunities for development and diversity," commented
Fernando Flores, CEO of Mexicana. "It is not a coincidence that
we thought of Iberia, the most important airline in Spain, as our
next strategic partner. Iberia will be a fundamental part of the
development of our international bilateral agreements, which are
designed to satisfy the needs of our customers." Dr. Rogelio
Gasca Neri was also pleased with the signing of this agreement as
it also represents the beginning of a successful relationship
between the Iberia and Cintra Groups.

At the conclusion of this grand event, Secretary Rodolfo Elizondo
spoke about the importance of this agreement, that "without a
doubt" he commented, "will result in incremental business between
Spain and Mexico."

Mexicana Airlines is Mexico's leading international airline. Its
fleet is considered to be one of the most modern in the world,
offering over 52 destinations in North Central, South America and
the Caribbean. Mexicana also offers great benefits in the accrual
and redemption of miles through its strategic allies in diverse
countries, as well as access to Executive Lounges, a wide array
of convenient connections and coordinated schedules within an
extensive route network.

Iberia today is not only Spain's leading airline, but also the
market leader on Europe-Latin America routes. With 2002 revenues
of 4.7 billion euros, net earnings of 160 million, and an
operating profit of 249 million, it is Europe's most profitable
scheduled carrier. It is also distinguished by its commitment to
social causes, and particularly to the integration of the
handicapped in the workplace. A survey in 2003 by the Enterprise
and Society Foundation ranks Iberia among the three Spanish
companies with the best reputations for social activism, and
first in employee cooperation programs. Along with its franchise
partner Iberia Regional, Iberia operates some 1,000 flights daily
to a hundred destinations around the world. In 2003, Iberia
carried over 29 million passengers. It is a member of the
oneworld airline alliance along with Aer Lingus, American
Airlines, British Airways, Cathay Pacific, Finnair, LanChile and
Qantas.

CONTACT: ana.uribe@edelman.com
Web site: http://www.mexicana.com



=====================
P U E R T O   R I C O
=====================

CENTENNIAL COMMUNICATIONS: Lawson to Integrate Procurement Ops
--------------------------------------------------------------
Lawson Software (Nasdaq:LWSN) has been selected by Centennial
Communications Corp. (Nasdaq:CYCL) to standardize and consolidate
the company's procurement operations in the United States and the
Caribbean. Centennial licensed Lawson 8 Series Procurement in
Lawson's second quarter of fiscal year 2004, which ended Nov. 30,
2003. Centennial will integrate Lawson Procurement with its
existing Lawson Financials applications to help streamline
procurement processes, deploy services faster, track project
profitability and achieve better vendor pricing.

Centennial is one of the largest independent wireless companies
in the United States and the Caribbean, serving more than one
million wireless customers. Lawson Procurement initially will be
implemented in Centennial's Caribbean operations, where the
company is a facilities based, fully integrated communications
service provider, offering both wireless and broadband voice,
data, Internet and video services.

Lawson will help Centennial automate and streamline purchasing
processes for its Caribbean operations. The telecommunications
company will use a single, centralized procurement database for
the entire region, located in Centennial's New Jersey corporate
offices. Centennial will use the centralized system to
consolidate orders, establish preferred vendors and improve
purchasing contracts. The integration of Lawson Procurement with
Lawson Financials will help Centennial track the profitability of
capital-intensive projects, such as extending network
capabilities to capture new revenue opportunities.

Centennial Senior Vice President and Controller Tom Bucks,
anticipates that the Lawson system will help to reduce costs and
increase the speed and efficiency of equipment purchases.

"The Caribbean markets represent our fastest growing markets
where the primary gating factor is ourselves," said Bucks. "If we
can further speed up the process of purchasing, receiving and
installing telecommunication equipment, we can deploy services
even faster to new and existing customers. Lawson Procurement
will help us streamline the way we handle purchase orders and
equipment, and we expect to save money through increased
operational efficiencies."

About Centennial Communications Corp.

Centennial is one of the largest independent wireless
telecommunications service providers in the United States and the
Caribbean with approximately 17.3 million Net Pops and
approximately 997,200 wireless subscribers. Centennial's U.S.
operations have approximately 6.1 million Net Pops in small
cities and rural areas. Centennial's Caribbean integrated
communications operation owns and operates wireless licenses for
approximately 11.2 Net Pops in Puerto Rico, the Dominican
Republic and the U.S. Virgin Islands, and provides voice, data,
video and Internet services on broadband networks in the region.
Welsh, Carson Anderson & Stowe and an affiliate of the Blackstone
Group are controlling shareholders of Centennial. For more
information about Centennial visit www.centennialwireless.com.

About Lawson Software

Lawson Software provides business process software solutions that
help services organizations in the healthcare, retail,
professional services, public sector, financial services and
other strategic markets achieve competitive advantage. Lawson's
solutions include enterprise performance management,
distribution, financials, human resources, procurement, retail
operations, and service process optimization. Headquartered in
St. Paul, Minn., Lawson has offices and affiliates serving North
and South America, Europe, Asia, Africa and Australia. Additional
information about Lawson is available at www.lawson.com.





               ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and Oona
G. Oyangoren, Editors.

Copyright 2004.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
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members of the same firm for the term of the initial subscription
or balance thereof are $25 each.  For subscription information,
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